Prestige Group buys Bengaluru land parcel for ₹450 crore

This marks the second significant land purchase by the Bengaluru-based developer this year, following its acquisition of 62.5 acres in Indirapuram Extension, Ghaziabad, in March, at a cost of ₹468 crore.

Irfan Razack, chairman and managing director of Prestige Group, said the large-format project is expected to generate a gross development value (GDV) of ₹4,500 crore.

The developer has been expanding its project footprint with a multi-city strategy in recent years.

Post-pandemic, there has been a noticeable increase in land acquisitions, driven primarily by a surge in the residential sector. Around 97 land transactions for over 2,707 acres were recorded in 2023, up from 2,508 acres across 82 deals in the preceding year, according to data by Anarock Property Consultants.

“The (Whitefield) project will strengthen our sales in our home market and we look forward to launching the project within the next three quarters and completing the development in four years,” said Venkat K Narayana, group chief executive of the Prestige Group.

Earlier this week, Prestige signed a deal with Abu Dhabi Investment Authority (ADIA) and Kotak AIF to raise ₹2,001 crore to build four residential projects worth ₹18,000 crore. The funds will be used to develop projects in Delhi, Mumbai, Bengaluru, and Goa.

The transaction has been structured as a 60:40 joint venture platform, between ADIA-Kotak and Prestige, where the former will invest ₹2,001 crore in the form of quasi debt. Prestige will contribute the rest.

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Published: 04 Apr 2024, 07:40 PM IST